NIPPON STEEL CORPORATION
5401・Prime Market・Iron & Steel
Business
Nippon Steel Corporation was established in 1950 and changed to its current name in 2019. It is Japan's largest steelmaker. The company operates four businesses—Steelmaking, Engineering, Chemicals & Materials, and System Solutions—and has 493 consolidated subsidiaries and 112 equity-method affiliates. The core Steelmaking business accounts for approximately 90% of consolidated revenue, supplying a wide variety of steel products—including sheet, plate, steel pipe, and specialty steel—to a broad range of industries such as automotive, construction, energy, and shipbuilding. In June 2025, the company made US Steel a wholly owned subsidiary, expanding global crude steel production capacity to approximately 82 million tons. It is accelerating global expansion, with a focus on the United States, Europe, India, and Thailand as priority regions.
Business Model
In the Steelmaking business, leveraging an integrated production system combining blast furnaces and electric furnaces, the company is driving price corrections and product mix upgrading centered on high-value-added products such as high-tensile steel sheets for automobiles, electrical steel sheets, and oil well pipes, thereby achieving a fundamental lowering of the break-even point through increased marginal profit. The three non-steelmaking businesses—Engineering, Chemicals & Materials, and System Solutions—leverage steelmaking technology and know-how as peripheral businesses, contributing to revenue diversification. Technology transfer and operational guidance to overseas joint ventures and subsidiaries are also one of the sources of revenue.
Company Strengths
The Super COURSE50 project achieved a 45% CO2 reduction rate through hydrogen reduction in blast furnaces (a world first), and the hydrogen reduction test furnace has also begun operation. Investment decisions have already been made for the construction, expansion, and restart of three electric arc furnaces based on the GX Promotion Act (at the Kyushu, Setouchi, and Yamaguchi Works by fiscal 2029), positioning the company ahead of domestic and overseas competitors in the practical application of decarbonization technology.
The company offers solution brands such as NSafe®-AutoConcept and ProStruct®, and through co-creative development with Mazda, became the world's first to adopt 2.0GPa-class hot-stamped steel sheet in the new CX-5. Deep technical collaboration with customers, such as the renewal of a long-term oil country tubular goods supply contract with Shell plc spanning over 50 years, makes imitation by competitors difficult.
The full consolidation of U.S. Steel in June 2025 established an integrated iron and steel production system in the United States. The company has built a track record of integrated production systems in growth-demand regions, including the capacity expansion of the Hazira Works and commencement of construction of a new steelworks in southern India at AM/NS India, and holding approximately 30% market share in Thailand through G/GJ Steel.
ENVALITH's Perspective
Performance Trend
Revenue reached ¥10,063,216 million in FY2026 (ending March 2026) (up 15.7% year on year), surpassing ¥10 trillion for the first time. The main driver was the expansion of the consolidation scope resulting from the integration of US Steel (June 2025), with US Steel contributing ¥1,933,070 million to revenue since the acquisition date. Meanwhile, business profit fell to ¥514,128 million (down 24.8% year on year), operating profit fell to ¥242,903 million (down 55.7% year on year), and profit attributable to owners of parent deteriorated sharply to ¥17,158 million (down 95.1% year on year). Externally, the downturn in the international steel market caused by China's excess production pushed down business profit, while a sharp increase in business restructuring losses of ¥271,225 million and financial expenses of ¥101,222 million associated with the US Steel integration directly hit operating profit and below. Share of profit of investments accounted for using the equity method also declined, from ¥126,900 million to ¥85,412 million. Following a phase of profit expansion from FY2022 through FY2023, profits have continued to decline from FY2024 onward, with FY2026 particularly affected by large one-off expenses. For FY2027 (ending March 2027), the company forecasts revenue of ¥11,000,000 million, business profit of ¥530,000 million, and profit attributable to owners of parent of ¥220,000 million, anticipating a substantial recovery.
Growth Strategy
Aiming to become the world's No.1 comprehensive steelmaker through a global crude steel production capacity of 100 million tons and the promotion of carbon neutrality and DX
Completed the acquisition of U.S. Steel in June 2025 (acquisition price of ¥2,062,513 million). Over 100 technical staff have been dispatched locally and are transferring operational and quality control technologies. In May 2026, decided to transition U.S. Steel Košice and Ovako AB to a direct investment structure by the Company, establishing a framework for the independent formulation and execution of growth strategies for European operations. Expects a profit contribution of ¥100 billion or more in real-term business profit.
Promoting capacity expansion and product upgrading at AM/NS India's Hazira Steelworks. In Rajayapeta in southern India, advancing a plan to construct a new integrated steelworks with new ironmaking sources; held a groundbreaking ceremony in March 2026 and commenced land preparation work. In Thailand, building a supply chain capable of countering imported materials by strengthening the integrated operation of G Steel, GJ Steel, and NS-Siam United Steel. Aiming to achieve a global crude steel production capacity of 100 million tons.
Achieved a 45% reduction in CO2 emissions (world's highest level) with Super COURSE50 in February–March 2026. Started operation of a hydrogen reduction pilot furnace in March 2026. Decided on capital investment to construct new, expand, and restart three electric arc furnaces at the Kyushu, Setouchi, and Yamaguchi Works by fiscal 2029, and was selected for a government support program under the GX Promotion Act. Also promoting the development of international rules toward market formation for GX Steel (Carbon Neutral Steel (NSCarbolex®)).
Set a target of consolidated real-term profit of ¥1 trillion or more in the '2030 Medium- to Long-Term Management Plan' (FY2027 (ending March 2027) to FY2031 (ending March 2031)) formulated in December 2025. Aiming to secure real-term business profit of ¥700 billion or more in fiscal 2026 (¥300 billion in the first half and ¥400 billion in the second half), with a target annualized rate of ¥800 billion or more in the second half. Also introduced a policy setting a minimum annual dividend per share of ¥24.
Merged Nippon Steel Stainless Steel and Nippon Steel Pipe by absorption in April 2025, made Kurosaki Harima a wholly owned subsidiary in April 2026, and decided in May 2026 to merge Sanyo Special Steel by absorption. Completed the aggregation of major process data on the integrated data platform 'NS-Lib,' promoting company-wide utilization of unified data. Starting with the Nagoya Works, actively promoting the unmanning and remote operation of large special-purpose vehicles and railways, working to improve the efficiency and sophistication of in-plant logistics.
Last updated: July 19, 2026